2009 Annual Report

Please read the Chairman and Chief Executive’s report. It provides a crisp summary of where Xero is at.

It’s now two years since our IPO and it is very satisfying to see all the hard work of our team paying off.

Over the last couple of months we’ve been invited to talk to many investment advisors and it is quite noticeable that we have moved from something of an oddity to take our place in the investment landscape. Our strategy and the opportunity that online software provides is becoming generally understood.

We try very hard to be a good public company. Transparent in everything we do and sharing the experience as much as we can. We are a trail blazer for other technology companies and that’s a responsibility we take seriously. We hope others will follow our path.

There is no doubt the disciplines of being a public company make you a better. When we first floated Xero, we said our challenge was to grow a long term, sustainable business. In fast moving technology companies funding strategy and business strategy are intertwined. While it is scary doing everything so publicly and within a rigorous legal framework, the challenge is rewarding. The fire is always under your feet but it really is a huge amount of fun.

Our product is getting to where we visualized when we started our journey. In two frantic years we’ve caught up with the incumbent providers in our space. We built the functionality required to be a credible alternative player but with all the benefits of being connected. This year we can start setting the agenda and do the things we really wanted to do when we started Xero. We’re at the end of the beginning – now the fun starts.

Thank you to all the valued customers and partners who have supported us over the last two years. We’ve made some great new friends and love getting your feedback.

And a huge thank you to our very supportive shareholders who have given us the opportunity to build a world class company. It’s a privilege for us to have the opportunity to build Xero properly.